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When does Home Loan EMI start?

By IIFL Home Loans | Published On Jun 13 2024 9:06 AM 1 min read 89 views 3340 Likes

A home loan is frequently required as part of buying a property. While getting a house loan is a big step toward realizing this goal, it's essential to comprehend the ins and outs of repaying it. The start of EMIs is one of the most important things borrowers need to know about. This blog will examine the home loan disbursement process and when EMIs start for home loans.

Recognising Home Loan EMI

Before getting too technical, knowing what a home EMI is, is essential. A borrower's set monthly payment to the lender to repay the loan is an Equated Monthly installment. It includes the interest as well as the principal amount. While the percentage of principal and interest varies during the loan, the interest is paid off in total during the first few years of the loan, and the annual percentage rate (EMI) stays fixed.

When does EMI start for a Home Loan?

EMI (Equated Monthly Installment) is the regular payment you make to the lender when you take out a house loan. However, when does this EMI begin? This will depend on several factors.

Once the home loan has been disbursed, the lender releases the funds for your property purchase, and the EMI usually begins. This often occurs a few weeks after completing the loan paperwork and meeting all prerequisites.

The lender will send a repayment schedule with the total amount of installments and the number of equal payments. This calendar will show the date of your first EMI payment.

The length of time between the loan disbursement and the first installment may differ based on your loan agreement's precise terms and the lender's policies. While some lenders may begin the payments right at once, others may allow you a grace period of one or two months before the EMIs start.

To manage your finances appropriately, it's a good idea to negotiate the EMI start date with your lender throughout the loan application process. Knowing when your EMIs start will help you better plan your monthly finances and ensure that you pay your house loan on time.

Factors determining Home EMI

Several factors determine when home loan EMI begins:

  • Date of Loan Disbursement: The loan disbursement date is the main factor affecting when the EMI begins. Usually, EMIs start as soon as the lender pays back the loan, either in whole or in part. The disbursement date is when the borrower gets the loan amount or when the lender pays the builder or seller in the event of a property purchase.

  • Complete Disbursement: The EMI begins the month after the loan amount is fully disbursed if that happens all at once. For instance, the borrower would start making EMI payments in April if the loan amount was disbursed in March.

  • Partial Disbursement: Lenders frequently release loan amounts in installments, depending on the construction status of properties still under construction. The borrower may choose not to begin paying the entire monthly installment at that point. Alternatively, they make a pre-EMI payment, which only covers interest on the amount disbursed until the loan's total disbursement. The regular EMI starts when the entire loan amount is disbursed.

In Summary

Caption - Home Loan EMI

The loan disbursement date, the property's building progress, and the borrower's financial plan all influence when home loan EMI s begin. Comprehending these variables facilitates improved planning and informed decision-making regarding home loan repayment.

Finally, compare the home loan interest rates, processing fees, and customer support offered by various lenders for your home loan possibilities. Choose a lender that fits your demands and offers favorable conditions. For information on affordable interest rates on house loans, visit IIFL Home Loans .


Q1. How do EMIs for home loans operate?


EMIs entail paying back your home loan's principal and interest on the remaining balance. An extended loan term (up to 30 years) can assist in lowering the annual percentage rate.

Q2. What day does the EMI start?


The loan payback period begins on the date the EMI payments start. It is contingent upon the type of loan. A moratorium period is granted before the beginning of repayment for the loan's purpose.

Q3. After three months, can we pay the EMI?


In extraordinary circumstances, such as a company shutdown or a job loss, your lender can let you skip three or six months of EMI payments. Following this time, you must continue making your scheduled regular EMI payments.

Q4. Is a home loan paid back all at once?


Depending on how far along the work is, loan may be repaid in whole or in parts. 

Q5. How long does home loan EMI last for?


The structure of an EMI gives it its meaning: it's a structured repayment option that makes a higher loan amount more affordable for borrowers by dividing it into manageable monthly instalments over a certain period, usually a few months to several years.


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